LLCs for Rental Property: Advantages and Disadvantages
Wednesday, October 28
THE ADVANTAGES AND DISADVANTAGES TO OWNING RENTAL PROPERTY IN AN LLC: There is a lot to consider and figure out when getting started with rental properties. Most people expect to spend a good amount of time finding the right property, negotiating the right price, and finding the right tenants- a...
Understanding the Schedule E for Rental Properties
Wednesday, September 09
Schedule E is a supplemental part of Form 1040, the US Individual Income Tax Return. Most real estate investors report the net income or loss from their rental properties using this form. Generally speaking, you will use the Schedule E if: -You own rental property in your own name, with your spo...
Proper Accounting for Mortgage Payments
Tuesday, August 25
Mortgage payments are one of the most common transaction types in a rental property owner’s books. For many investors they are also the largest monthly cash outflow. Because of their frequency and size, properly recording your mortgage payments is key for keeping accurate books on your real esta...
How do I set up the chart of accounts for my rental property?
Tuesday, August 11
Properly setting up the chart of accounts for your rental property business will save you time and help you get the most out of your accounting system. To do so, consider your goals first and then work backwards. Most investors keep their books because 1) the government mandates an accurate repor...
Do I need accounting software for my rental properties?
Monday, May 11
Do I need accounting software for my rental properties? Rental and investment property owners -just like every business- need to track their income and expenses so that they can accurately file taxes and maximize their profits. The stakes are real: inaccurate books can lead to overpaying tax...
Do I need a separate bank account for my rental property?
Tuesday, March 24
Read through almost any “Accounting 101 for Real Estate Investors” article and you’ll find a common refrain among the first items on the list: Keep your personal and business books separate. This is usually followed by a vague explanation mentioning that your rental activities count as a busines...